President Trump signs executive order imposing baseline tariff of 10% on all countries

Oil prices fell on Thursday following tariff announcements by US President Donald Trump and data indicating higher-than-expected US crude inventories.

The international benchmark, Brent crude, decreased by around 2% trading at $72.17 per barrel at 10.22 a.m. local time (0722 GMT), down from $73.64 at the previous session’s close.

The US benchmark, West Texas Intermediate (WTI) fell by about 2.1%, settling at $69.01 per barrel, compared to its prior session close of $70.48.

On Wednesday, President Trump signed an executive order imposing reciprocal tariffs on nations worldwide, fulfilling a long-standing pledge. The move has weighed on markets for months. A baseline tariff of 10% will be applied to all countries except Canada and Mexico, with steeper rates targeting what Trump has labeled the ‘worst’ trade offenders.

US Treasury Secretary Scott Bessent cautioned nations against retaliating, warning that any countermeasures could lead to even higher US tariff rates. Meanwhile, European Commission President Ursula von der Leyen called Trump’s tariff policy a ‘major blow’ to the global economy, warning it will ‘massively suffer.’

Experts anticipate retaliatory measures from affected nations, fueling market concerns that an escalating trade war could dampen economic growth, weaken oil demand, and exert further downward pressure on prices.

Adding to the bearish sentiment, US Energy Information Administration (EIA) data showed a rise in crude oil inventories. US stockpiles increased by approximately 6.2 million barrels to 439.8 million barrels in the week ending March 28.

Strategic petroleum reserves, which are excluded from commercial stocks, grew by 300,000 barrels to 396.4 million barrels, while US crude production rose by 6,000 barrels per day (bpd) to 13.58 million bpd.

The surge in US crude stocks, combined with trade tensions, has eased supply concerns, reinforcing downward pressure on oil prices.

By Duygu Alhan